xStocks Beginner’s Guide: What Are Tokenized Stocks and How to Buy COINX on Gate

In May 2025, an innovative financial product called xStocks quietly launched. In just over two months, its daily trading volume surpassed the 2 billion dollar mark, with more than 25,500 users holding it.

This product launched by the Swiss compliant asset tokenization platform Backed Finance is reshaping the way global stock investments are made through blockchain technology, allowing users to invest in stocks of star companies such as Tesla, Apple, and Coinbase without the need for a traditional brokerage account.

What is xStocks?

xStocks is a compliant physical asset tokenization project that focuses on converting publicly traded stocks globally into tradable crypto tokens on the blockchain in a 1:1 collateralized form. Each token represents real existing company shares and is issued with full asset collateralization:

• 1:1 Asset Collateralization: For each Token issued, there is a corresponding amount of real stocks held by a regulated third-party custody institution.
• 24/7 Trading: Break the traditional stock market trading time limits, supporting 24⁄7transaction
• Global Access: No local bank account or complex compliance process is required, allowing users from around the world to participate.
• Multi-chain support: Initially based on Solana public chain, has now expanded to BNB Chain and its ecosystem

This model essentially bridges the gap between traditional stock markets and the crypto ecosystem, allowing users to trade stock assets just like they buy and sell cryptocurrencies.

What is COINX?

COINX is the Coinbase (COIN) stock token in the xStocks series, representing equity exposure to the world-leading cryptocurrency exchange Coinbase.

Unlike holding Coinbase stock directly, COINX holders receive a "synthetic exposure" linked to the performance of COIN stock prices — enjoying the benefits of price fluctuations without owning the actual stock’s voting rights and other entitlements.

As of August 2025, xStocks has a total asset management scale of approximately $43.6 million, covering popular company stock tokens such as Tesla (TSLAx), Apple (AAPLx), and Coinbase (COINx). Among them, COINX, as the equity representative of a benchmark enterprise in the crypto industry, has become one of the first popular underlying assets to be launched.

How to Trade COINX on Gate (Step-by-Step Guide)

Global leading cryptocurrency trading platform Gate will launch the xStocks zone on July 3, 2025, becoming the world’s first trading platform to support tokenization stock contract market. Below is the complete process for purchasing COINX on Gate:

Step 1: Registration and Account Preparation

1. Visit Gate.com to register an account and complete identity verification.
2. Ensure that there is enough USDT in your account (all xStocks trading pairs are settled in USDT).

Step 2: Fund Recharge

1. After logging in, go to [Assets] - [Spot]
2. Search for "COINX" and click [Recharge]
3. Copy the SOL chain recharge address (xStocks Token is issued based on Solana)
4. Transfer USDT from an external wallet or recharge COINX directly

Step 3: Start Trading

1. Go to the [Trading] page
2. Choose [Spot] or [Contract] trading mode
3. Enter "COINX/USDT" in the trading pair search box
4. Choose the type of trade based on your needs:
   • Spot trading: Directly buy and sell COINX Token
   • Contract trading: Supports 1-10x leverage for long/short
5. Place an order using a market order (instant execution) or a limit order (execution at specified price)

Pro Tip: Advanced traders can enter Gate’s [Alpha Zone] for better liquidity and slippage control, especially suitable for large trades.

Core Advantages of xStocks

Trading tokenized stocks like COINX on platforms such as Gate offers multiple advantages:

• Borderless Investing: Users in regions such as Africa and Asia can invest in U.S. listed companies without the need to open a stock account, and the VALR exchange has thus become the first platform in Africa to offer stock trading.
• Fragmented investment: No need to buy whole shares, small amounts of funds can participate, significantly lowering the investment threshold.
• Flexible trading strategies: Support for leveraged long/short positions, breaking the traditional stock market’s limitation of only being able to "buy up."
• On-chain free circulation: Tokens can be freely transferred to personal wallets to participate in on-chain applications such as DeFi staking and lending (in stark contrast to Robinhood’s closed tokens).
• Low cost and high efficiency: Based on high-performance blockchains such as Solana, transactions are fast and Gas fees are low.

Challenges and Considerations

Despite the broad prospects, xStocks still faces some challenges:

• Liquidity Limitations: Apart from popular assets like TSLAx, most tokenized stocks have limited trading volumes, resulting in liquidity issues.
• Regulatory Uncertainty: Currently xStocks is not open to U.S. users due to the lack of a clear regulatory framework in the United States. In Europe, Kraken provides the service through a compliant entity in Cyprus and has obtained a CySEC license.
• Legal attribute ambiguity: Regulatory agencies have not reached a consensus on the classification of tokenized stocks (securities, debt instruments, or digital assets), leading to compliance complexities.
• No shareholder rights: Holding tokens such as COINX does not grant actual voting rights or other corporate governance rights.

Future Prospects

With the support of mainstream exchanges such as Gate, xStocks is rapidly expanding:

1. Product innovation: developing from spot trading to perpetual contracts and other derivatives to meet the high-risk appetite of crypto users.
2. Asset diversification: Extending from publicly traded company stocks to private equity tokenization may reshape the circulation model of early-stage company equity.
3. Global Expansion: After VALR’s entry into the African market, more regional exchanges are expected to join the xStocks Alliance.
4. Ecosystem Integration: Protocols like Kamino Lend have started accepting xStocks as collateral, enhancing token utility.

The tokenization of the stock market is still in its early stages, but its growth momentum cannot be ignored. With daily trading volumes surpassing $2 billion, xStocks represents not only technological innovation but also an important attempt at democratizing global finance.

Whether you are a native cryptocurrency user or a traditional stock investor seeking new avenues, xStocks offers a unique opportunity to participate in the future of the global financial market using a wallet instead of a brokerage account, and with USDT instead of US dollars, without borders.